Germany as a business location is losing attractiveness from the perspective of many companies. A survey by the international credit insurer Atradius among around 340 companies in Germany makes this clear. 72 per cent of respondents feel inadequately supported by politicians concerning current economic challenges, with 29 per cent receiving no support at all. Nearly half of the companies rate the attractiveness of their respective location as having declined.
Frank Liebold, Country Director Germany at Atradius, describes the situation as a fight on several fronts. Rising costs, restricted access to credit, and geopolitical uncertainties are reportedly shaping the current business climate. The feeling of having to tackle these challenges largely alone is pronounced among many companies. 43 per cent of respondents state that the attractiveness of their location has deteriorated compared to the previous year – primarily influenced by increasing levies, the persistent shortage of skilled labour, and high energy prices.
Parallel to these developments, corporate financing is coming under increasing pressure. 22 per cent of companies report worsened access to financing over the past twelve months; only three per cent note an improvement. This significantly exacerbates the situation for businesses that need to realise investments with borrowed capital. A substantial part of the burden results from geopolitical tensions. More than two-thirds of the companies surveyed (66 per cent) already see the impact in their supply chain costs, while another 21 per cent expect corresponding consequences within the next twelve months.
The biggest burden factors here are rising transport costs (78 per cent), higher purchase prices for raw materials and intermediate products (75 per cent), and increased energy prices (75 per cent). Just under half of the companies additionally suffer from increased planning uncertainty. Frank Liebold states that, against this background, almost seven per cent of companies fear a production stop in the worst-case scenario; every third company does not rule out a partial production stop.
In response to these developments, companies are structurally adjusting their supply chains. Regions such as the Middle East and China/Taiwan are cited by approximately half of the respondents each as areas with the greatest supply risks. More than one in five companies has already resorted to so-called friend-sourcing or plans this step to withdraw suppliers from politically risky regions. Frank Liebold notes that while the restructuring of supply chains is recognised as necessary, it is complex and requires lead times that many companies do not have. With 80 per cent, the majority of the companies surveyed have not yet taken this step.
Companies are demanding sustainable relief instead of one-off measures like the unfulfilled tax-free lump sum payment. The survey shows clear preferences:
- —60 per cent advocate for a reduction in electricity tax.
- —57 per cent favour a reduction in income tax.
- —Around 56 per cent reject an increase in the CO2 levy for 2027.
Frank Liebold emphasises that businesses desire structural relief, not isolated measures. Lower taxes and stable levies, therefore, create the urgently needed planning certainty. The survey was conducted in May this year and included companies from sectors such as automotive, construction, chemicals, services, IT/software, and mechanical engineering, with annual turnovers ranging from under five million to over one billion euros and employee numbers between under 100 and over 1,500.
